The Court of Appeal recently dismissed an appeal brought by the Commissioner of Inland Revenue (CIR) in CIR v Diamond [2015] NZCA 613. At the heart of the case was the issue of the meaning of “Permanent Place of Abode” (PPOA). Section YD 1 of the Income Tax Act 2007 states that a person is [...]
The Taxation (Bright-Line Test for Residential Land) Bill has recently been passed, which aims to improve compliance with the current land sale rules under the Income Tax Act 2007. One of the most significant changes introduced by the Bill is the shift away from the “intention test” (which makes gains from the sale of land [...]
The Supreme Court’s decision in Penny and Hooper v Commissioner of Inland Revenue (SC, 24/08/11) demonstrates how one can easily overstep the line between legitimate trust structures and tax avoidance. In that highly-publicised case two surgeons sold their practices to companies they had established, and which their own trusts would be the sole shareholders of. [...]